Question

Assessing Financial Statement Effects of Transactions
K. Daniels started Daniels Services, a firm providing art services for advertisers, on June 1. The following accounts are needed to record the transactions for June: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Service Fees Earned; Rent Expense; Utilities Expense; and Wages Expense. Record the following transactions for June using the financial statement effects template. (Record each transaction in the order it appears.)

June	1	K. Daniels invested $12,000 cash to begin the business in exchange for common stock.
	2	Paid $950 cash for June rent.
	3	Purchased $6,400 of office equipment on credit.
	6	Purchased $3,800 of art materials and other supplies; the company paid $1,800 cash with the remainder due within 30 days.
	11	Billed clients $4,700 for services rendered.
	17	Collected $3,250 cash from clients on their accounts billed on June 11.
	19	Paid $5,000 cash toward the account for office equipment (see June 3).
	25	Paid $900 cash for dividends.
	30	Paid $350 cash for June utilities.
	30	Paid $2,500 cash for June wages.

Use negative signs with answers, when appropriate.

	Balance Sheet
Transaction		Cash Asset	+	Noncash Assets	=	Liabilities	+	Contributed Capital	+	Earned Capital
June	1
	2
	3
	6
	11
	17
	19
	25
	30
	30

ncome Statement
Revenue	-	Expenses	=	Net Income
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Answer 1

* Requirement, as asked

Balance Sheet										Income Statement
June Transactions	Cash	+	Noncash	=	Liabilities	+	Contributed	+	Earned
	Asset		Assets				Capital		Capital	Revenue	-	Expenses	=	Net Income
1	$12,000						$12,000		$0					$0
2	($950)								($950)			$950		($950)
3			$6,400		$6,400				$0					$0
6	($1,800)		$3,800		$2,000				$0					$0
11			$4,700						$4,700	$4,700				$4,700
17	$3,250		($3,250)						$0					$0
19	($5,000)				($5,000)				$0					$0
25	($900)								($900)					$0
30	($350)								($350)			$350		($350)
30	($2,500)								($2,500)			$2,500		($2,500)